Could HorizonsBetaProNYMEXNaturalGas See a Reversal After Having a Gap Down Now?

November 14, 2016November 14, 2016Marguerite Chambers

The stock of HorizonsBetaProNYMEXNaturalGas (TSE:HND) gapped down by $0.19 today and has $12.81 target or 14.00% below today’s $14.89 share price. The 9 months technical chart setup indicates high risk for the $26.81 million company. The gap down was reported on Nov, 14 by Barchart.com. If the $12.81 price target is reached, the company will be worth $3.75 million less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. About 921,333 shares traded hands or 8.37% up from the average. HorizonsBetaProNYMEXNaturalGas (TSE:HND) has declined 34.32% since April 8, 2016 and is downtrending. It has underperformed by 39.30% the S&P500.

Horizons BetaPro NYMEX Natural Gas Bear Plus ETF seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that correspond to two times (200%) the inverse (opposite) of the daily performance of the New York Mercantile Exchange (NYMEX) natural gas futures contract for the next delivery month. The company has a market cap of $26.81 million. The Fund is managed by BetaPro Management Inc. It currently has negative earnings. ProFund Advisors LLC is the portfolio manager of the Fund.